Required REO Offer Checklist

 

 Your offer cannot be submitted without this form and required documents below.

Email your offer and forms to chris@discoverypropertygroup.com or Fax to 858 458 3520

 

 

Basic  information

Address of Property:

Buyer’s Agent Name and Phone Number:

 

Email:

Buyer’s Name:

Buyer’s Lender Name and Firm :

 

Lender’s Phone Number:

CHECKLIST

   Offer Please attach with financing filled in correctly and completely as well as financing type (VA, CONV, CASH).  Loan amount and down payment should be consistent with pre-qualification letter.

   Pre Qualification or Pre Approval – Please attach Preapproval from specific lender if required. If multiple buyers, ALL buyer’s names need to be on the Preapproval. Approval needs to state financing type, for example, Conv, VA. Loan or price on Pre approval is consistent with offer submitted.

   Copy Of Deposit – Please attach legible copy of deposit

   Proof Of Funds- Please attach legible proof of funds for down payment and closing costs must show buyer’s name.

   WPA- Please attach with dollar amount, unless none needed. You will not be able to add one later.

 

   Discovery Property Group “REO Disclosure”- Please attach legible copy

   Page 8 of RPA- Needs to be filled out correctly and signed.

    

 

 

 

 

 

 

 

“REO DISCLOSURE”

 

1.             Communications are best handled by email. Please supply email address on ALL offers. You can call with questions that you do not think can be answered via email.

Submitting an offer:

2.             Submit ENTIRE offer at once:  RPA, BIA, pre approval (specific lender if required), copy of deposit, Offer Checklist, Reo Disclosure and any other applicable addenda. Incomplete offers will NOT be combined or submitted. 

3.             Offers submitted over weekends or holidays will be submitted on the following business day.

Negotiations:

4.             Some banks require up to 5-10 days on market before considering offers.  Seller’s agent will contact the buyer’s agent with any news on an offer, including all counters, acceptances or rejections. Multiple calls to our office and agents will only increase response time so for an update it is best to email.

5.             Most Sellers require at least $1000 for earnest money deposit.  A good rule of thumb is 1% of purchase. Higher earnest money is perceived as a more serious offer.

6.             Price is not the only factor for a winning offer.  Other factors include, but are not limited to, earnest money, down payment, or any factor that may increase chances to close escrow.

7.             In the event that the bank agrees to pay for certain repairs, it will be up to a maximum amount.  This includes Section 1 Termite.  Should costs exceed the banks guaranteed amount, it is the buyer’s responsibility to complete the work.  Buyer must increase earnest money to cover these costs or negotiate personally with the contractor to compensate them whether or not the transaction completes.

8.             A seller’s addendum is provided after offer acceptance. Typically, the seller addendums override the purchase agreement, all counters, and addendums.  Agent should review addendum with buyer for complete agreement.  If the closing company is named in the seller’s addendum, then a copy of certified earnest money funds must be returned with the signed addendum; otherwise, please include a copy of a personal check written to “For deposit only to escrow for (enter address)”.

9.             Buyer is responsible for all inspection costs, including wells and septic. Sellers seldom even respond to requests to repair.  Some lenders will consider the standard 17 day inspection time.  Many reduce it to 7 days.  Some lenders allow inspections before offer process – some do not.  Ask before doing any inspection.  Be prepared with inspectors before making an offer.

10.          Buyer is responsible to fund on time.  Loans funding late will pay per diem. The rate will vary depending upon the bank.

11.          The following statement will apply to all REO properties: The seller has never occupied the property and is exempt from supplying the buyer with a TDS.  This home is being sold in its current as is condition.  It is highly recommended that the buyer completes thorough home inspection by a licensed home inspector before close of escrow.  The buyer and/or buyer’s agent shall verify all of the information contained herein before close of escrow. Seller shall have sole and absolute discretion to accept, counter, or reject any or all offers. Seller is not required to accept any particular offer, regardless of the terms or conditions of the offer. All accepted offers are subject to final bank approval. No offer is considered accepted until seller signed contracts are returned to the buyer. Information contained herein is deemed reliable but is not guaranteed.

12.          Foreclosures are sold "AS-IS" and list price already reflects any known property condition. If there are reports available the Listing agent will supply them as part of the disclosures. However, disclosures are seldom provided and surveys are not provided The buyer’s agent will personally show and inspect the property with the buyer.

13.          After all contract contingency dates are met, earnest money WILL BE FORFEITED to the seller in full if Buyer does not perform.

14.          Banks often do not pay commission to a buyer who is licensed in Real Estate.­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

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